Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department is taking steps to support Safe Hands plan holders financially impacted by its administration.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

I am sympathetic to all the Safe Hands customers who have lost money, following the collapse of the firm in 2022.

In January 2021, the Government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This has ensured that 1.6 million funeral plan customers are, for the first time, protected by compulsory and robust regulation as they seek to put their affairs in order.

Unfortunately, the customers of Safe Hands do not qualify for compensation under the Financial Services Compensation Scheme (FSCS) as the funeral plan industry did not become regulated by the FCA until 29^th July 2022. It would not be appropriate for the Government to set the precedent or expectation that it will use taxpayer money to compensate consumers for the misconduct of unregulated firms or products which were not sold as FCA regulated at the time.

DWP's Funeral Expenses Payments scheme offers financial support for a simple funeral for those on certain income-based benefits or tax credits. The scheme covers the necessary burial or cremation costs and provides up to £1,000 for other expenses.

Found: _31 Matt Vickers Alicia Kearns Harriet Cross Katie Lam .

Found: _33 Matt Vickers Alicia Kearns Harriet Cross Katie Lam ★.